IT operations management solutions provider Avocent Corp. (AVCT) said on Monday that it has completed an amendment to its senior credit facilities, expanding the total borrowing capacity by $90 million to $340 million.
The amended credit facilities consist of an existing five-year $250 million revolving line of credit and a new three-year $90 million term loan.
The company plans to use the term loan to pay down its revolving line of credit to provide greater future borrowing flexibility.
Total debt outstanding remains $165 million, with $175 million now available on the five-year revolving bank line of credit for general business purposes and financing future acquisitions.
Both the revolving line of credit and term loan mature in June 2011 and bear interest at a variable rate based on certain leverage ratios with the current rate being LIBOR plus 175 basis points.
AVCT is currently trading at $23.50, down 29 cents or 1.22%.
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